A video of the Managing Director of Tamil Nadu’s renowned Annapoorna Hotel apologising to Finance Minister Nirmala Sitharaman for his remarks on the Union government's Goods and Services Tax (GST) has sparked controversy in Tamil Nadu.
In the video released on X by the TN BJP, Annapoorna Hotel MD Srinivasan, who is also the honorary president of the Tamil Nadu Hotels Association, can be seen apologising to the Finance Minister for his comments. The video shows Sitharaman, Coimbatore South BJP MLA Vanathi Srinivasan, and Srinivasan seated in a room.
"Please pardon me for my comments. I do not belong to any political party," Srinivasan is heard saying.
The video is now removed after a huge public outrage.
The incident occurred on September 11, during a meeting between Finance Minister Nirmala Sitharaman and hoteliers in Coimbatore.
During the meeting, Srinivasan raised concerns about the challenges faced by restaurateurs due to varying GST rates on food items. He pointed out that cream-filled buns are taxed at 18%, while plain buns are not subject to GST, the IndiaToday reported.
“There is 18% GST on cream-filled buns, whereas there is no GST on buns. Customers are saying, ‘Just give me the bun; I will add the cream and jam myself,’” Srinivasan remarked, drawing laughter from others present.
He further noted, “The Ministry has imposed 5% GST on sweets and 12% on namkeen because people in the North consume more sweets. In Tamil Nadu, sweets, namkeen, and coffee are often consumed together. Please apply a uniform GST rate for these items. The confusion over GST rates is causing issues even with our computer systems.”
The video of his apology that came later went viral on social media and has drawn criticism of the Finance Ministry and fueled the ongoing debate over GST rates.
It was during a private conversation that followen when Srinivasan apologised to Nirmala Sitharman for his comments.
The video of making a businessman apologise for a genuine concern has irked both DMK and Congress parties.
Reacting to the video, Leader of Opposition in the Lok Sabha Rahul Gandhi slammed the government and said that when "fragile egos" of those in power are hurt, it seems humiliation is what they will deliver.
Gandhi said if this "arrogant government" would listen to the people they would understand that a simplified GST would solve the problems of lakhs of businesses.
In a post on X, Gandhi said when the owner of a small business, like the Annapoorna restaurant in Coimbatore, asks a public servants for a simplified GST regime, his request is met with "arrogance and outright disrespect".
"Yet, when a billionaire friend seeks to bend the rules, change the laws, or acquire national assets, Modi Ji rolls out the red carpet," he alleged.
"Our small business owners have already endured the blows of demonetisation, an inaccessible banking system, tax extortion and a disastrous GST. The last thing they deserve is further humiliation," Gandhi said. But when the fragile egos of those in power are hurt, it seems humiliation is exactly what they will deliver, the former Congress chief said. He said MSMEs have been asking for relief for years.
"If this arrogant government would listen to the people they would understand that a simplified GST with a single tax rate would solve the problems of lakhs of businesses," Gandhi said.
Reacting to the Union Minister’s action, DMK MP Kanimozhi quoting a verse of Thirukural - 'Greatness humbly bends, but littleness always
Spreads out its plumes, and loads itself with praise' - said that the Union government and the Union Ministers should not hurt the self-esteem of Tamil Nadu.